The Australian Olympic Committee has said it would not consider weightlifter Daniel Koum for the team for London without a full investigation into allegations he demanded money to compete at an international competition.

In a statement, the AOC has said it has received correspondence from Koum's lawyers denying wrongdoing in the Oceania Weightlifting Championships.

The Australian Weightlifting Federation (AWF) has claimed Koum threatened to pull out of the championships in Samoa - which would have jeopardised Australia's chances of qualifying for the Games - if he did not receive payment of $5000.

"The AOC has urged the AWF provide Mr Koum with an opportunity to respond to the allegations and has encouraged the establishment of an independent body to consider this matter on behalf of the AWF," the AOC statement said.

"The AOC encourages the continued independent consideration of this matter and at the conclusion of the 2012 AWF Olympic Nomination Trial, the AOC will seek confirmation on the selection status of all athletes in the Shadow Team.

"That is, athletes identified for nomination and those no longer in contention for the 2012 Australian Olympic Team.

"Should Daniel Koum be identified for nomination to the AOC, the AOC would not consider this nomination until the AWF has concluded its independent investigation and dealt with this matter."

The AWF Olympic nomination trials will be held in Brisbane on Saturday. Koum is understood to be in Brisbane to compete in the trials.

Koum, who is originally from Cameroon but became an Australian citizen in 2008, has said that the claims made against him are false and that he intends to take legal action.

The alleged incident happened at the championships, which double as an Olympic qualifying competition.

Australia needed a high finish as a team in the event to win a quota spot for one weightlifter to compete in London.

The Australian Olympic Committee (AOC) released a statement on Wednesday afternoon saying it was working with the AWF to investigate the matter.

The AWF Board had been expected to consider the incident and report back to the AOC's Director of Sport, Fiona de Jong, by Friday.